Hut 8 Operations Update for March 2024

Miami, April 05, 2024 - Hut 8 Corp. (Nasdaq | TSX: HUT), ("Hut 8" or the "Company") a leading, vertically integrated operator of large-scale energy infrastructure and one of North America's largest Bitcoin miners today released its operations update for March 2024.

"March was another productive month in our post-merger restructuring program," said Asher Genoot, CEO of Hut 8. "We continue to make the changes required for profitable, long-term growth."

"On March 6, we announced the closure of Drumheller. Our team relocated efficient miners to Medicine Hat and retired inefficient miners. We expect to see the impact of these changes on our operating efficiency moving forward."

"We also made significant progress on our new Salt Creek site and expect to fully energize the site in April, less than three months after breaking ground. We removed our miners from Kearney and Granbury and are relocating them to our owned sites, Salt Creek and Alpha, to be energized. While this decreased our deployed hashrate and Bitcoin production during the month, it gives us the crucial ability to maintain full control of our fleet and drive down our energy costs going into the halving."

"Lastly, site-level operating responsibilities transitioned to the new owner of Kearney and Granbury and we continue to transition ownership of all other activities at those sites. Under our agreement, we expect to continue generating revenue at these sites until the agreement is terminated at the end of April, at which point we are entitled to receive an early termination fee of $13.5 million."

"I look forward to sharing more updates on the impact of our restructuring and growth initiatives in the coming months."

Notes:

1. Includes all Self-Mining, Managed Services, and Hosting infrastructure, including 100% of the energy capacity at the King Mountain site, which is owned by the King Mountain JV in which the Company has a 50% membership interest and a Fortune 200 renewable energy producer has the remaining 50% membership interest (the "King Mountain JV").
2. Average during the period for March 2024.
3. Includes all miners that are racked with power and networking, rounded to the nearest 100, in Self-Mining, Managed Services, and Hosting infrastructure with power and networking, including all miners at the King Mountain site.
4. Includes all Self-Mining, Managed Services, and Hosting hashrate, including 100% of the hashrate at the King Mountain site.
5. Self-Mining operations for Hut 8 include 100% of operations at the King Mountain site.
6. Deployed miners are defined as those physically racked with power and networking, rounded to the nearest 100; deployed self-mining miners net of the 50% share of the King Mountain JV held by Hut 8's joint venture partner was 46.1K during March and 65.1K during February.
7. Indicates the target hashrate of all deployed miners; deployed self-mining hashrate net of the 50% share of the King Mountain JV held by Hut 8's joint venture partner was 4.5 EH/s during March and 6.3 EH/s during February.
8. Bitcoin produced net of the 50% share of the King Mountain JV held by Hut 8's joint venture partner was 192 BTC during March and 254 during February.
9. As of month-end.
10. The Managed Services figures reflected in this table include the Self-Mining and Hosting metrics from the sites where Hut 8's Managed Services business is an additional service layer in the operation of the site (at Charlie, Delta, Echo, and Hotel - site details below). As a result, the sum of the Self-Mining, Managed Services, and Hosting numbers will not add up to the "Total energy capacity under management", "Total deployed miners under management", and "Total hashrate under management" figures that are also reflected in the table.
11. Miners are rounded to the nearest 100.
12. 42.6K deployed miners under management net of the 50% share of the King Mountain JV held by Hut 8's joint venture partner during both March and February.
13. 4.7 EH/s under management net of Hut 8's joint venture partner's 50% share of the King Mountain JV during March and February.

Highlights:

• Hut 8 executed a series of strategic measures at Drumheller, closing the site, moving efficient miners to Medicine Hat, and retiring inefficient miners.
• Construction of the 63 MW Salt Creek site is progressing on schedule, and the Hut 8 team expects to energize miners in April.
• In preparation for the energization of Salt Creek, the Company removed all miners hosted at Kearney and Granbury and is relocating them to Salt Creek and Alpha
• Site-level operating responsibilities at Kearney and Granbury transitioned to the new owner and Hut 8 continues to transition ownership of all other activities.
• At Ionic Digital's Cedarvale site in Ward County, Texas, the Hut 8 team completed the initial phase of construction and is preparing to energize the site.

About Hut 8
Hut 8 Corp. is an energy infrastructure operator and Bitcoin miner with self-mining, hosting, managed services, and traditional data center operations across North America. Headquartered in Miami, Florida, Hut 8 Corp.'s portfolio comprises eighteen sites: nine Bitcoin mining, hosting, and Managed Services sites in Alberta, New York, Nebraska, and Texas, five high performance computing data centers in British Columbia and Ontario, and four power generation assets in Ontario. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp.

Cautionary Note Regarding Forward-Looking Information
This press release includes "forward-looking information" and "forward-looking statements" within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, "forward-looking information"). All information, other than statements of historical facts, included in this press release that address activities, events or developments that Hut 8 and New Hut expect or anticipate will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the business, operations, plans and other such matters is forward-looking information. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "allow", "believe", "estimate", "expect", "predict", "can", "might", "potential", "predict", "is designed to", "likely" or similar expressions. Specifically, such forward-looking information included in this press release includes statements relating to the Company's profitable, long-term growth, operating efficiency, relocation of miners, and restructuring and optimization initiatives.
Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, security and cybersecurity threats and hacks; malicious actors or botnet obtaining control of processing power on the Bitcoin network; further development and acceptance of the Bitcoin network; changes to Bitcoin mining difficulty; loss or destruction of private keys; increases in fees for recording transactions in the Blockchain; erroneous transactions; reliance on a limited number of key employees; reliance on third party mining pool service providers; regulatory changes; classification and tax changes; momentum pricing risk; fraud and failure related to digital asset exchanges; difficulty in obtaining banking services and financing; difficulty in obtaining insurance, permits and licenses; internet and power disruptions; geopolitical events; uncertainty in the development of cryptographic and algorithmic protocols; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; the COVID19 pandemic, climate change; currency risk; lending risk and recovery of potential losses; litigation risk; business integration risk; changes in market demand; changes in network and infrastructure; system interruption; changes in leasing arrangements; failure to achieve intended benefits of power purchase agreements; potential for interrupted delivery, or suspension of the delivery, of energy to mining sites and other risks related to the digital asset mining and data centre business. For a complete list of the factors that could affect Hut 8, please see the "Risk Factors" section of Hut 8's Transition Report on Form 10-K, available under the Company's EDGAR profile at www.sec.gov, and Hut 8's other continuous disclosure documents which are available under the Company's SEDAR+ profile at www.sedarplus.ca and EDGAR profile at www.sec.gov.

Hut 8 Corp. Investor Relations
Sue Ennis
sue@hut8.io

Hut 8 Corp. Media Relations
Erin Dermer
erin.dermer@hut8.io